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Ongoing Hydropower Projects
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Projects under implementation through IG model:

1. Punatsangchhu-I HEP is a 1200 MW run-of-the river project located on the left bank of Punatsangchhu river in Wangdue Phodrang Dzongkhag( District) in Western Bhutan. Its estimated capacity is 5700 million units of electricity in an average year. Construction of Punatsangchhu-I HEP was commenced in November 2008 at a project cost of Rs 3514.8 crore. In July 2016, the Union Cabinet approved the Revised Cost Estimate of Rs. 9375.58 crore for the project .Physical progress of the project, is 83 % as of June 2017. So far, GoI has released Rs. 7419.3 crore to the Project Authority.

The project was scheduled to be completed by November 2016. However, due to the sliding of the right bank at dam site which happened in July 2013, the commissioning of the project is getting delayed. Stabilisation measures have been undertaken by the PHPA management and as per the current projection of the project authorities the project is expected to be completed in first quarter of 2022. Complex geology at the dam site has been a major challenge in implementing the project. In early 2017, Norwegian Geological Institute (NGI) was appointed as the review consultant for the project. NGI in its report submitted to CWC, has suggested for additional stabilisation measures for the dam of PHEP –I. In the Technical Coordination Committee Meeting held in July 2017, these measures were discussed and deliberated by the experts of both sides. PHPA authority meeting held in August 2017 has endorsed the recommendations of TCC on the implementation of measures suggested by NGI Report and the measures are expected to be implemented after the monsoon.

3. Punatsangchhu-II HEP is a 1020 MW run-of-the river project located on Punatsangchhu river in Wangdue Phodrang Dzongkhag in Western Bhutan. Its estimated capacity is 4357 million units of electricity in an average year. Construction of Punatsangchu-II HEP was commenced in December 2010 at a project cost of Rs. 3777.8 crore In July 2016; the Union Cabinet approved the Revised Cost Estimate of Rs. 7290.62 crore for the project. Physical progress of the project, as on December 2017, is 72%. So far, GoI has released Rs.4953.72 crore to the Project Authority. The project is scheduled to be completed by December 2017. On 3rd March, 2016, a massive rock fall occurred in the Down Surge Shaft Gallery during the night shift in which six workers lost their lives. The mitigation measures have been taken up by the management. The project is expected to be completed by last quarter of 2019.

While there is a considerable delay in commissioning of the projects Puna-I & Puna II, lots of time and efforts have been devoted by both the governments to take all possible safety and stabilisation measures to ensure that these projects stand the test of the time.

3. Mangdechhu HEP is a 720 MW, run-of-the river scheme located on river Mangdechhu in Trongsa Dzongkhag (District) in Central Bhutan. Annual energy generation from the Project with 95% machine availability would be 2925.25 million units. The bilateral agreement to execute the Mangdechhu Hydroelectric Project was signed between Government of India and Royal Government of Bhutan on 30th April 2010 .On 23 March 2016, the Union Cabinet approved the Revised Cost Estimate (RCE) of the project of Rs. 4020.6303 crore (at March 2014 Price Level). So far, GoI has released Rs. 3966.7 crore to the Project Authority. The Second Revised Cost Estimate of Rs 4818.3 (at March 2016 Price Level) is under submission to GOI. Physical progress of the project, as of March 2017, is 90 %. The project but is expected to be completed by June 2018.

Projects under implementation through JV model:

4. Kholonghchu HEP is 600 MW run-of-the-river in the lower course of Kholongchhu river in Trashiyangtse district of Bhutan. It is the first HEP in Bhutan to be implemented under the Joint Venture model, by a JV-company between Druk Green Power Corporation(DGPC) of Bhutan and SJVN Ltd. of India. The foundation stone for the first HEP 600 MW Kholongchhu was laid by Prime Minister Shri. Narendra Modi during his visit to Bhutan in June 2014 and the pre construction activities are in progress.

Although the Kholongchhu project was inaugurated in 2014, it has witnessed a slow progress. RGoB has explicitly conveyed reservations about JV model projects and their strong preference for “time tested” Inter-Governmental model projects. In this regard, in August 2016, Ambassador had submitted a non-paperto the Minister of EconomicAffairs, Royal Government of Bhutan where it was conveyed that the JV projects would not be converted to Inter-Governmental model and RGoB should expedite action on signing of the Concession Agreement. In September 2016, the Concession Agreement of the project that was finalised was submitted for the approval of the Cabinet of the Royal Government of Bhutan. In May 2017 RGOB issued an Executive Order establishing a high level hydropower committee, with a mandate to develop a clear, robust and consistent policy that will be driven by overall long term interest of the country.

 

 

 
 
 
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